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The tragic crash of Air India flight AI-171 near Meghaninagar, Ahmedabad, on June 12, 2025, has left the entire nation in shock. The flight, heading to London's Gatwick Airport, was carrying 232 passengers and 12 crew members when it went down shortly after takeoff. Thick smoke could be seen as far as Vastrapur, and emergency teams rushed to the site. Sadly, many lives have been lost in this incident. This heartbreaking event highlights the importance of understanding airline compensation rules and the role of travel insurance.
Airline Liability and Passenger Compensation
In India, airline compensation for injury or death is guided by the Montreal Convention, 1999. This international agreement, which India accepted in 2009, requires airlines to pay compensation of roughly ₹1.55 crore per passenger, even if no one is found to be at fault. If negligence is proven, additional compensation may be granted. While this applies to international flights, many Indian domestic airlines also follow similar rules under DGCA guidelines.
What Flight Accident Insurance Covers
Flight accident insurance is designed to offer financial security to passengers and their families in the event of an air travel accident. While plane crashes are rare, the impact can be devastating. This type of insurance covers accidental death, permanent disability, emergency hospitalisation, and even loss of baggage. Policies may offer between ₹25 lakh to ₹1 crore in death benefits, and ₹5-10 lakh for disability.
Importance of Travel Insurance
Travellers who buy travel insurance before their journey can claim various benefits. These include coverage for emergency medical expenses, flight delays, or cancellations. However, passengers without insurance may still receive compensation from the airline as per legal rules. In some cases, government ex-gratia payments, employer-provided insurance, or credit card-linked policies may help.
How Much Compensation Is Given
The compensation depends on many factors-age, salary, job, marital status, number of dependents, and financial condition. The Montreal Convention does not allow claims for mental suffering. According to aviation consultant Mark Martin, airlines should also offer interim compensation of ₹10 lakh within 90 days after the incident. This amount is adjusted later during the final settlement.
Example from a Previous Crash
After the Kozhikode crash, Air India Express gave interim compensation of ₹10 lakh to families of deceased passengers aged 12 and above, ₹5 lakh for children under 12, and ₹2 lakh to injured passengers. Each airline may have a different process- some contact families directly, while others require claim forms.
Legal Options for Families
If families are unhappy with the compensation offered, they can take legal action. The Montreal Convention allows them to file cases in different places, such as where the airline is based, where the accident occurred, or where the passenger lived.
This information may help travelers understand their rights and available support. While nothing can replace the lives lost, knowing the options for help and justice is important in such tragic times.
